Deciding who is included or excluded from workers’ compensation coverage varies state by state. Before deciding whether or not to include or exclude yourself, you need to consider a few important factors aside from just the premium savings.
- Does my health policy exclude coverage for work related injuries?
- What is my risk of injury and the associated premiums for coverage?
- Is there a minimum and maximum payroll allocation for officers and workers compensation coverage? What are those figures?
- Does an injury I voluntarily excluded coverage for jeapardize medicare or medicade benefits in the future?
Workers compensation is compulsory for corporate officers, who are considered employees of the corporate entity. However, officers of a Maryland Close Corporation, a Professional Corporation, a Farm Corporation or a member of a Limited Liability Company with at least 20% ownership in profits may elect coverage exclusion. Partners and Sole Proprietors are exempt from workers compensation coverage but both Partners and Sole Proprietors may elect coverage.